Suppose Your Payroll Check Is Directly Deposited to Your Checking

question 189

Multiple Choice

Suppose your payroll check is directly deposited to your checking account. Everything else held constant,total reserves in the banking system ________ and the monetary base ________.

• A)remain unchanged;remains unchanged
• B)remain unchanged;increases
• C)decrease;increases
• D)decrease;decreases

---

Definitions:

Long-Term Liabilities

Debts that will be repaid over a number of years, such as long-term loans and bond issues.